Bill to replace commissioners a hot topic

By Wes Wolfe / Staff Writer

Published: Monday, February 25, 2013 at 10:03 PM.

“We are in the process of a major fleet modernization effort within the utility to retire older, less-efficient, unscrubbed coal plants,” Brooks said. “Meaning, plants that are lacking environmental controls on them, and replacing those plants with cleaner-burning, more efficient natural gas units.”

He added, “By the end of the initiative, we’ll have retired about 30 percent of our coal fleet in the Carolinas, which is a significant step, and significant change that reflects improvements in technology, as well as the long-term, low price of natural gas that we’ve been experiencing in our utility.”

Around the state, people speaking at the hearings are typically on fixed incomes, or representing those who are, and at the very least are trying to get the rate increase reduced. A number of nonprofits oppose the move, including the state chapter of AARP.

Democracy North Carolina is another group fighting the rate increase, and the organization’s eastern organizer said he’s been surprised by the number of older and low-income residents who have participated in the group’s public speaking training. He’s optimistic about the final outcome.

“I think there is a chance, a real chance that there will be an impact,” Jake Gellar-Goad said. “Because in the past they’ve had public hearings, and had people turn out at the public hearings in large numbers that help keep the rates from going up as much as they would have otherwise. There is a history that it’s worked before. With some mobilization it can work again.”

The matter of the increase, along with parent company Duke Energy’s rate hike application on Feb. 4, is of an at least tertiary concern of the General Assembly. If Senate Bill 10 passes, all seven members of the utilities commission would be tossed out of their appointments.

“I’m aware of the issue,” said John Bell, R-Wayne, of the Progress Energy bid. His district also covers parts of Lenoir and Greene counties. “Of course, no one wants to see any rate increases. Especially with the state of our economy, with people living paycheck-to-paycheck. I’m interested to hear what Progress Energy has to say, and what they’ll be doing.”

Soon, Progress Energy Carolinas customers will be paying more for their electricity.

The electricity provider made the application to the N.C. Utilities Commission in late 2012, and the commission is in Snow Hill tonight to hear from the public on the matter.

But there’s an agreement on the major points of the decision.

Monday, Progress Energy and the public staff of the utilities commission reached a settlement on the rate increase. Originally, Progress Energy wanted an overall 11 percent rate increase, which broke down to 14.2 percent for residential customers, 9.9-11.6 percent for commercial businesses and 5.6 percent for industrial customers.

The agreed average rate increase will instead be 4.7 percent starting June 1, and going up another 1 percent in 2014. The rate for each class of customer is yet to be determined, and the utility commissioners have final say on the deal.

The public hearings tonight in Snow Hill and in March in Raleigh are to go ahead as scheduled.

Progress Energy spokesman Jeff Brooks said more than 80 percent of the rate request is to modernize the company’s facilities.

“We are in the process of a major fleet modernization effort within the utility to retire older, less-efficient, unscrubbed coal plants,” Brooks said. “Meaning, plants that are lacking environmental controls on them, and replacing those plants with cleaner-burning, more efficient natural gas units.”

He added, “By the end of the initiative, we’ll have retired about 30 percent of our coal fleet in the Carolinas, which is a significant step, and significant change that reflects improvements in technology, as well as the long-term, low price of natural gas that we’ve been experiencing in our utility.”

Around the state, people speaking at the hearings are typically on fixed incomes, or representing those who are, and at the very least are trying to get the rate increase reduced. A number of nonprofits oppose the move, including the state chapter of AARP.

Democracy North Carolina is another group fighting the rate increase, and the organization’s eastern organizer said he’s been surprised by the number of older and low-income residents who have participated in the group’s public speaking training. He’s optimistic about the final outcome.

“I think there is a chance, a real chance that there will be an impact,” Jake Gellar-Goad said. “Because in the past they’ve had public hearings, and had people turn out at the public hearings in large numbers that help keep the rates from going up as much as they would have otherwise. There is a history that it’s worked before. With some mobilization it can work again.”

The matter of the increase, along with parent company Duke Energy’s rate hike application on Feb. 4, is of an at least tertiary concern of the General Assembly. If Senate Bill 10 passes, all seven members of the utilities commission would be tossed out of their appointments.

“I’m aware of the issue,” said John Bell, R-Wayne, of the Progress Energy bid. His district also covers parts of Lenoir and Greene counties. “Of course, no one wants to see any rate increases. Especially with the state of our economy, with people living paycheck-to-paycheck. I’m interested to hear what Progress Energy has to say, and what they’ll be doing.”

Along with a general restructuring of the state’s boards and commissions, the bill would also clear out appointments by former Democratic Govs. Mike Easley and Bev Perdue for new members selected by Republican Gov. Pat McCrory.

Bill sponsor Sen. Bill Rabon, R-Brunswick, said in a Feb. 5 Wilmington StarNews story, “This administration should be able to wield its power.”

But the utility commission is of singular consequence because of McCrory’s 28 years with Duke Energy, and political opponents point to his 2012 statement of economic interests form in which he lists ownership of at least $10,000 in Duke Energy stock.

McCrory’s denied any favoritism in his actions. The governor’s office now no longer comments on the topic.

Bell backed the Republican majority’s effort.

“I personally look at it as what we need to do is we were sent here to do a job, and part of the job was to look at carving out some of the government bureaucracy, and by doing away with some of these boards and commissions,” Bell said. “We’re doing just that. The other thing is, our governor needs people in place to get the job done. Any time a CEO comes into a company, they remove people and put their people in place to get the mission done, and Senate Bill 10 does that.”

Upon passage, the utilities commission would be reduced to five members, which it was before two were added in 1975. Three appointees would serve through June 30, 2019, and two would have terms through June 30, 2017. From there on, commissioners would serve staggered six-year terms.

Gerrick Brenner, executive director of Progress North Carolina, said Republicans are making the move because they can, with supermajorities in each chamber of the General Assembly.

“If this were par for the course, we wouldn’t need to change the law,” Brenner said. “They’re changing the law because they want to impose a radical power grab. That’s pretty clear. Imagine the chaos if every time you had a change in governor, you were throwing out more than 100 board and commission members.”

Wes Wolfe can be reached at 252-559-1075 or wes.wolfe@kinston.com. Follow him on Twitter @WolfeReports.

Breakout Box

N.C. Utilities Commission Meeting

Greene County Courthouse

301 N. Greene St., Snow Hill

Today, 7 p.m.

Meeting is to hear from the public and address Progress Energy’s proposed electricity rate increase.